Japan, Britain deepen economic security ties

Japanese Prime Minister Sanae Takaichi and British Prime Minister Keir Starmer announced a joint economic security declaration during a visit to London, aiming to stabilize and diversify global supply chains. The agreement addresses concerns over China’s tightening controls on critical minerals like rare earths and permanent magnets, which could destabilize global trade. Both leaders emphasized cooperation across the entire critical-mineral supply chain, from mining to recycling, and agreed to work on joint projects in third countries. The declaration also highlighted energy security amid Middle East instability, focusing on emergency response systems and maintaining trade flows. A separate Frontier Technology Partnership was established to promote joint research and private investment in AI, semiconductors, quantum technology, space, cybersecurity, and nuclear energy. The British government estimated the agreements could generate over $24 billion in economic gains, including $12 billion in Japanese investment in British infrastructure and financial services, and up to $12 billion in offshore wind projects. Additionally, Japan and Britain reaffirmed progress on the Global Combat Air Program, a next-generation fighter jet project with Italy, aiming to finalize contracts for its next phase by the end of June. The partnership also includes strengthened cooperation on dual-use technologies like drones and AI through a bilateral defense industry forum. Takaichi noted that security in the Indo-Pacific is linked to stability in Europe and the Atlantic, while the agreement may indirectly impact South Korea’s semiconductor, battery, and defense industries, which rely heavily on critical materials. The two countries plan to influence global rules on critical-mineral stockpiling and processing through forums like the G7 and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The agreement signals a broader strategic shift in Japan-Britain relations, encompassing security, economic policy, and advanced technology collaboration.